Himachal CM hails new economic measures, says will boost investments in state

Shimla: Himachal Chief Minister Jai Ram Thakur on Monday hailed the slew of measures and tax exemptions announced by Union Finance minister Nirmala Sitharaman, which he claimed will address all concerns on economic slowdown and lead to new job creations.

Himachal Pradesh, in particular, he said will get a big boost in the tourism sector, bring in new investments in the state and increase tourists footfall.

"The measures have come at a stage, when Himachal Pradesh, was going to organise a two-day global Investors' meet at Dharamshala, aimed at attracting investments to the tune of Rs 85,000 crore. The initial response to the tax concessions has been encouraging. Hopefully, the tax cuts and rollback of the surcharge on the capital gain will make the economy more stable," he told a press conference here.

The Chief Minister said the decision to slash corporate tax for domestic companies and new local manufacturing companies through an ordinance was in itself a highly forward-looking measure, which will result in new jobs creations and bring the economy back on the rails.

The new corporate tax cuts are expected to boost economic growth, which slipped to a six-year low of 5 per cent in the April-June quarter, he admitted. The reliefs announced by the finance minister will result in foregoing revenue of Rs 1.45 lakh crore annually but this was being done to promote investment and growth.

Replying to newsmen's questions as to how he expects to get investments in the state in the environment of slow down, the Chief Minister said, "I am optimistic that steps taken by the centre will start yielding results very soon. The market has responded very positively. Himachal itself has several other advantages of favourable investment. We are looking at things holistically and want investment to come in every sector from tourism to food processing, power, hospitality and IT."

About section 118 of HP Tenancy and Land Reforms Act, the Chief Minister said, "There is no question of diluting the provisions, which imposes restrictions on non-Himachalis to but Land in the state. But, the procedures have simplified to ensure that genuine persons get land purchase exemptions without any problem. "We have started a project on a pilot basis in Mandi to give online clearances under section 118. It will cut down delays and ensure greater transparency. If the project does well, we will extend it to other districts," he added.

The government will ensure that investors' fears on section 118 are addressed

suitably without diluting the provisions.